SINGAPORE- Iron ore futures rose on Friday to post weekly gains, buoyed by expectations that top steelmaker China would relax its strict COVID-19 restrictions, lifting demand sentiment.
The most-traded January iron ore on China’s Dalian Commodity Exchange DCIOcv1 ended day-time trade 2.2 percent higher at 787.5 yuan a ton, rising about 5.2 percent for the week.
On the Singapore Exchange, the benchmark December iron ore was up 2.7 percent at $105.75 a ton.
Some communities in Chinese cities where COVID-19 is still spreading are easing off on testing requirements and quarantine rules ahead of an expected shift in virus policies nationwide after widespread social unrest.
Meanwhile, China reported a slight dip in new daily COVID-19 cases on Dec. 1, the National Health Commission said.
Market sentiment has also been buoyed by China’s measures to support its struggling property sector, a key consumer of steel.
These measures should have a better chance of developing into stronger demand for steel and iron ore amid a shift away from strict adherence to the zero-COVID policy, ANZ said in a note.